Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Point out Stability Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s organization secretary at time shown media experiences she said were based upon “stolen” information and facts within an affidavit to the SSA.
The SSA did examine. It discovered the information wasn't a subject of condition security and the “prevalence of alleged corruption and irregularities” gave “ample motive” for the media to reveal it.
A whole new board and management has considering the fact that taken in excess of the NLC and thus far have taken actions to finish corruption in the establishment.
A Point out Security Agency (SSA) investigation uncovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented enough motive” for publicity from the media.
The probe into intended “data protection breaches and sabotage of NLC functions” was carried out just after then-NLC board chairperson Alfred Nevhutanda wrote to the SSA in December 2018 requesting it to analyze.
Here's
Nevhutanda’s letter,
an affidavit by now suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the security agency’s “private” results and recommendations.
Nevhutanda asked the SSA to analyze the part of NLC employees in the alleged leaking of data, and Nene, in her affidavit recognized unique media and studies that she claimed involved these leaks.
Within the letter outlining its findings, the SSA instructed the NLC that although protecting condition data was “a legal crucial geared toward protecting the sovereignty and integrity with the state” this only placed on appropriately categorized information.
Although it did not say so instantly, the SSA results implied which the allegedly leaked information did not fall into this class.
Noticeably, the SSA manufactured it apparent that the necessity to protect state details “will not avert any person from blowing the whistle on corruption or irregular or criminal activity”.
The SSA investigation discovered the NLC facts involved with the alleged breach was “sensitive and privileged in mother nature, but not categorised in terms of the prescripts with the Bare minimum Information Protection Standards (MISS)”.
“The leakage from the pertinent sensitive Formal NLC facts to your media won't pose a risk to national protection,” the SSA explained, adding which the effect of the breaches was reputational.
The SSA report observed “no evidence of the factual and incriminating nature in opposition to any from the suspected NLC staff members that might be discovered from the information and info interrogated”.
It also stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does give enough motive to obtain this kind of exposed within the media”.
Conspiracy claims
In 2020, Nevhutanda informed MPs in the course of a session of Parliament’s trade, sector and Levels of competition portfolio committee that there was “a conspiracy” where facts “stolen” through the NLC was sent into the US, wherever he claimed it was being marketed to fund a smear marketing campaign from the NLC.
He was repeating comparable statements he experienced Formerly designed in Parliament, which integrated advertisement hominem assaults on GroundUp which reporter but was cautious not to name both.
“I arrived in this article On this August household past calendar year and reported to honourable members that details about our beneficiaries has become stolen and place in one state in the usa,” he explained to MPs.
“We termed to the Condition Safety Company to come back explore the make a difference simply because we've been receiving reviews that our information and facts is creating cash for media platforms and journalists,” he reported. “There's been converse, needless to say from a person source, one particular media, that spoke much about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but did not notify MPs which the SSA investigation were done almost a year earlier.
Proactive funding was at the heart of the looting of the lottery. It facet-stepped the traditional grant system. The NLC could by itself discover a undertaking to fund and appoint a non-earnings organisation to oversee it.
Just after Nevhutanda initially advised Parliament in 2018 that he experienced requested the SSA to analyze the intended breach, the South African Countrywide Editors Forum issued an announcement saying that his remarks mirrored “a particularly risky Mindset wherever the media is becoming blamed to the NLC’s inherent complications”.
“As opposed to investigating why thousands and thousands can not be accounted for, the NLC has rather attempted to Forged doubt within the integrity with the journalists involved and has asked the SSA to research their sources.”
Proactive initiatives built magic formula
Safety flaws identified in the NLC grant funding system in the SSA’s investigation, appear to happen to be utilized being an excuse from the NLC to eliminate all proactive-funded assignments from its central grants system.
“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘solution’ and projects were being faraway from the grant funding procedure and managed manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Place of work, Executive Manager Authorized so as to safeguard [the] information,” Nene stated in her affidavit.
“There was plenty of inside dialogue, with many forwards and backwards, about how to proceed to plug the alleged leaks”, a supply, who was in a very senior situation within the NLC at some time, explained to GroundUp. “Eventually, the choice was taken to remove all the proactive jobs through the program and limit usage of A few people today”.
Some in that handful of individuals were implicated in corruption.
Maselwa, who resigned with the NLC numerous a long time ago, has actually been implicated in corruption involving lottery funds. He acquired R4.three-million from lottery resources allocated to build a library and museum intricate in Kuruman (see Taung Cultural New music and Arts Expo) which he used to construct a residence in an upmarket gated progress in Pretoria. The property is among a number of compensated for with lottery money which were frozen once the Asset Forfeiture Device received a preservation purchase in December 2022.
The politically-linked Nevhutanda, who was appointed given that the NLC board chairperson by former President Jacob Zuma in 2009 and was near superior-ups from the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their own observe.
Also implicated are previous board members William Huma, who resigned soon after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has due to the fact died.
When a new administration, including the complete board and government, took about within the NLC in late 2022 and early 2023, they discovered a “chaotic mess” within the documentation referring to proactive funding, Significantly of which was paper-based mostly. Crucial documents were being lacking. Files held for safekeeping by doc storage firm Metrofile had been signed out and hardly ever returned.
The NLC was ready to Recuperate copies of some lottovip paperwork from its Mimecast e-mail archiving method and the laptops in their assistants and help employees.
Information reviews
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem probable data stability breaches along with the unauthorised use and/or dissemination of private details received on account of executing official features from the Fee by NLC employees. The actions are intended to undermine the integrity in the Commission although disrupting the powerful features [in the NLC] and leading to insurmountable reputational harm towards the Fee as being the custodian of non-public details entrusted to it by its beneficiaries.”
His ask for for that SSA to investigate was supported within an affidavit by suspended NLC organization secretary, Nomphumelelo Nene.
Nene is currently struggling with a disciplinary inquiry soon after she was unsuccessful in lawful action to set aside conclusions of irregular expenditure on her view.
The goal of her affidavit, Nene said, was “to file the events which transpired referring to facts stability breaches at the National Lotteries Fee”.
She listed numerous news reports which she claimed were the outcomes of these “breaches” (see at the conclusion of this article).
Nene said that a whistle-blower approached the NLC alleging that one of its employees, Sello Qhino, experienced “offered her classified NLC Information and facts and persistently encouraged her to deliver the knowledge to GroundUp”.
Qhino, who blew the whistle with a series of dodgy lottery-funded jobs in Kuruman soon after tries to raise The problem internally were being ignored, was subsequently fired.
Referring to an 18 November 2018 posting within the Day-to-day Dispatch about the misappropriation of Lottery funds, Nene mentioned the NLC recognized then suspended Zintle Rungqu. She was an personnel while in the NLC’s East London Office environment, who was the lover plus the mother of whistleblower Mzukise Makatse’s three small children.
Rungqu and Makatse consider Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, with the NLC paying out R470,000 on lawyers to stand for it, but was located not responsible and allowed to return to operate.
“The common Consider these article content is [they contain] classified details regarding proactive funding jobs,” Nene stated in her affidavit.
When Runqu was suspended, Makatse moved out on the relatives household to go ahead and take heat off her and his young children. Going through homelessness, he moved into an Office environment in an vacant manufacturing unit belonging to a colleague.
Equally Makatse and Qhino are participating in an NLC reparation procedure meant to recognise the harm lots of people suffered for the hands with the NLC. Apologies and, in some instances, fiscal compensation are anticipated.
“Some folks have been actually impacted extremely negatively by this … This is actually distressing,” NLC Commissioner Jodi Scholtz instructed the Day-to-day Maverick final calendar year.
“I fulfilled a number of these individuals. It had been just so coronary heart-wrenching that their complete life are already turned the other way up,” explained Scholtz.
Among the People she achieved had been Qhino and Makatse.
Safe and sound System needed for whistleblowers
The SSA located the absence at enough time of an appropriate channel for whistleblowers to report corruption led them to show into the media.
“Failure to have a dedicated anti-corruption channel will result in staff presenting these kinds of situations outside of the NLC,” the SSA mentioned in its findings.
“Offered the magnitude of corruption in state establishments, it stays essential that it makes sure that the NLC complies with all security prescripts Which its focus is on ensuring that illegal and irregular carry out is adequately mitigated towards and by making certain an ample channel for whistle-blowers to report untoward conduct without having getting intimidated.”
It suggested which the NLC create a “Protected channel” for employees to deliver information on any “untoward action” that will not reduce or discourage staff members from blowing the whistle. A whistle-blowers policy, based on the Safeguarded Disclosures Act twenty five of 2000, is actually a need.”
Media studies Nene outlined
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Conditioning Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to show NLC corruption. “The post had factors of knowledge not readily available in the general public domain, thereby boosting worry on inner Info stability breaches. The allegations from the media ended up independently investigated,” Nene explained. “Even so, staff answerable for divulging categorized information and facts have still for being determined”;
A 28 January 2018 article revealed via the Dally Dispatch “citing several allegations with the Limpopo Mirror article printed on 10 December 2017 plus a new allegation concerning a previous employee because of the identify of Mzukisi Makatse. He was charged and summarily dismissed to the menace induced on the organisation.”
A 16 November 2018 post within the Lowvelder in regards to the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Despite receiving R27-million in lottery grants, the rehab hasn't been finished. “The Lowvelder posting contained categorized information with regard to NLC policy, increasing further worries of interior info safety breaches,” Nene claimed in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, nevertheless [it] highlighted the heightened data safety hazards inside the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene claimed GroundUp had verified in its Tale that it was according to leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Promotion of Usage of Facts) request for particulars concerning the project, she claimed